A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 29 September 2023. BDN financial editor Roger Willis reports.
USA — “HIGHER FOR LONGER” MANTRA
American investors finally began to accept that interest rates would be higher for longer and move on, at the end of a brutal month for equities during September closing out a Q3 of consistently heavy losses. Crude oil prices now kissing $100 a barrel didn’t help the overall mood and Wall Street market indices continued struggling for traction.
Headline blue-chip S&P 500 stocks and the Dow Jones Industrial Average respectively incurred 0.7% and 1.3% weekly declines. Tech-heavy NASDAQ Composite betting effectively flatlined, just 0.1% up over five sessions. Only S&P’s MidCap 400 offered a glimmer of hope, rising by 0.3%.
But leading US powersports players with NYSE MidCap listings remained stuck in their lacklustre groove. Harley-Davidson shares were nailed to 33 bucks or lower throughout September, while Harley’s LiveWire electrified spin-off retreated remorselessly. Polaris Industries seems to have stalled on a 104-buck marker.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 33.06 | +1.4% | -1.5% |
| Polaris Industries | 104.14 | -0.2% | -5.9% |
| Textron | 78.14 | +0.4% | +3.9% |
| Ideanomics (Energica) | 2.43 | +30.6% | -43.5% |
| Niu Technologies | 2.83 | -0.4% | -5.7% |
| LiveWire | 6.93 | -10.8% | -39.6% |
EUROPE — DEPENDS ON POINT OF VIEW
Eurozone core inflation (which excludes energy and food, and is closely monitored by the European Central Bank) fell by more than expected in September to 4.5%, down from 5.3% in August. However, celebrations were muted and major market indices still lost ground.
German and Italian investors were circumspect. Frankfurt’s Xetra Dax closed 1.1% down, a loss exceeded by both BMW and Volkswagen Group. The FTSE MIB in Milan dropped by 1.2%, while Piaggio veritably plunged without notably refreshed leadership. As for the more minor Wiener Börse in Austria, its ATX was positive by a modest 0.3% — not that KTM, Husqvarna and GasGas parent Pierer Mobility benefited. Half yearly results profitability, sullied by discounting in Pierer’s substantial bicycle business, clearly displease domestic investors, chipping away at the share price once again.
| Currency: euro | Price | Week | Month |
| BMW | 96.76 | -2.5% | +0.3% |
| Volkswagen | 124.90 | -5.6% | -5.8% |
| Pierer Mobility | 64.40 | -1.5% | -16.6% |
| Piaggio Group | 3.03 | -8.7% | -11.7% |
JAPAN — EXCHANGE RATE AGONY
The rocky state of Japan’s artificially shrivelling yen valuation, eating into export profits, meant further woe for investors in Tokyo, where the Nikkei 225 market index fell for a second consecutive week — this time around by 1.7%. As leading exporters, all four Japanese motorcycling majors suffered portions of share price punishment from punters.
| Currency: yen | Price | Week | Month |
| Honda | 1682 | -4% | +11.8% |
| Yamaha | 3931 | -1.5% | +4.5% |
| Suzuki | 6016 | -0.2% | +12.5% |
| Kawasaki | 3620 | -3.6% | +2.8% |
INDIA — PARTY POOPERS
Mumbai’s S&P BSE Sensex market yardstick took another dose of abuse, falling by 0.3%. Most indigenous motorcycle manufacturers managed to maintain modest positivity, despite dire warnings that their imminent peak-sales season in the run-up to Diwali’s Festival of Lights Xmas surrogate is likely to disappoint. Several of them have expressed opinions about how recent rampant inflation has undermined entry-level stability among financially-constrained rural consumers, who can no longer afford to pimp their rides.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 3057.25 | +1.1% | +5% |
| Bajaj Auto | 5063.70 | +1.3% | +10.5% |
| TVS Motor | 1521.80 | +1.9% | +13.6% |
| Eicher Motors | 3446.95 | +1.1% | +3.2% |
| Mahindra | 1554.25 | -3.3% | +2.2% |
CHINA — CHAOS WITH CHINESE CHARACTERISTICS
China’s biggest residential property developer Evergrande is teetering on the brink of bankruptcy and its multi-billionaire founder Hui Ka Yan has had his collar felt by government stooges for “illegal crimes”. (Are there any other sort?). Its share price could well crash into oblivion at short notice, leaving a mountain of unrequited debt..
Remarkably, though, a generalised stock market rout was put on hold for different reasons. Chinese technology shares jumped after Beijing’s top internet regulator released a draft rule simplifying cross-border data transfers.
Nevertheless, the market mood was febrile to say the least. In a trading week mercifully shortened to four sessions by Friday’s Mid-Autumn Festival, Shanghai’s SSE Composite index dropped by 0.7% and the blue-chip CSI 300 closed 1.3% down. Among the dirty dozen indigenous biker stocks now remaining, only two managed to swerve clear of negativity.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 14.11 | -2.4% | -0.3% |
| Zongshen | 6.83 | +1.5% | +4.4% |
| Sundiro | 2.47 | -0.4% | +5.1% |
| CETC (Jialing) | 13.66 | -6.5% | +16.1% |
| Lifan | 3.65 | -0.8% | +2% |
| Loncin | 5.83 | -0.5% | +15.7% |
| Linhai | 9.23 | N/A | +5.6% |
| Guangzhou Auto | 10.01 | -0.5% | -0.7% |
| CFMoto | 140.20 | -0.1% | +0.9% |
| Xinri E-Vehicle | 13.78 | -0.9% | -6.9% |